- Zschach critiques Ripple’s governance, questioning its resilience and centralization.
- Public blockchains lack compliance, making SWIFT the safer financial option.
- Zschach’s cryptic tweet hints at major developments at #Sibos2025.
Tom Zschach, SWIFT’s Chief Innovation Officer, has sharply criticized Ripple’s governance approach, claiming that simply surviving lawsuits does not equate to real resilience. Recently, Zschach posted to social media stating that there must be neutral governance, in which no particular business or competitor dominates the infrastructure.
His words are interpreted as an outright attack on Ripple, whose monopoly on the XRP Ledger has brought about concerns within the financial community. As noted by Zschach, SWIFT, an international messaging network, does not have a single owner, but thousands of banks work together to establish the rules and governance standards.
According to Zschach, this type of shared governance is why financial institutions favor the infrastructure of SWIFT over the decentralized blockchain of Ripple. He has clarified that financial institutions are reluctant to trust the platform of a competitor, making the importance of neutral, shared control in the provision of trust and stability all the more critical.
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Ripple’s Decentralization: A Weak Point in Governance
Further in his post, Zschach argued that Ripple’s claim of decentralization is undermined by its significant control over the XRP network. Although Ripple positions the XRP Ledger as a full-scale decentralized system, the company has raised questions about its sustainability in the long term due to its control over the system.
One of the possible pitfalls in this model, as identified by Zschach, is that Ripple’s structure might not be sound enough to withstand the financial sector’s stringent requirements. Compliance and regulatory certainty are areas of interest to financial institutions, and Ripple control may negatively affect its expansion.
Public Chains and Compliance: A Risky Alternative to SWIFT
Zschach also addressed public blockchains, describing them as “a fast engine with no cockpit” due to their lack of enforceability, privacy, and compliance. He stated that traditional financial systems, such as SWIFT, will likely absorb the best features of blockchain technology but will do so on their own terms. In his view, SWIFT is the more reliable choice for institutions that require a trusted, neutral system for cross-border payments.
Ripple’s Growing Competition with SWIFT: A Cryptic Reminder from Zschach
Adding fuel to the speculation, Zschach recently resurfaced an eight-year-old article on the competition between Ripple and SWIFT. His tweet, tagged “not a drill” and followed by “8 years on — see you at #Sibos2025,” caused a stir in the financial community.
The tweet hints at Zschach’s belief that there’s more to Ripple’s challenge than meets the eye. As the rivalry between the two continues to heat up, Zschach’s cryptic message suggests that significant developments may be expected at the SWIFT Sibos conference in 2025.
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